BRUSSELS, BELGIUM / RankWire.AI / – The European Union officially established the Scaleup Europe Fund with a target of raising €5 billion. The European Commission finalized the legal framework for the fund on August 4, 2026. This financial instrument operates within the European Innovation Council Fund, with EQT designated to oversee investments and select participating companies based on commercial standards. The Commission anticipates initial transactions to commence within weeks as the fundraising process progresses.
In addition to the €1 billion allocated by the European Commission through Horizon Europe-backed financing, both public and private founding investors are expected to contribute further capital during the initial closing phase. The €5 billion figure serves as a fundraising goal rather than a confirmed total. Authorities have not disclosed the amount of capital secured at the first closing. EQT retains the option to raise more commitments as the fund broadens its investor base.
This fund aims to deliver late-stage funding to European enterprises advancing strategic technological fields. EQT will evaluate potential investments via an open, merit-based selection process, managing the portfolio and making investment decisions independently. While investors will take part in governance, they will not have a say in choosing specific companies. EQT received the management mandate following a competitive process organized for the new vehicle.
Fund focuses on critical technology sectors
The Scope of the Scaleup Europe Fund includes artificial intelligence, quantum computing, semiconductors, robotics, and autonomous systems. Its investment mandate also encompasses energy, space, biotechnology, medical technology, and advanced materials. Companies involved in agritech can qualify under the approved scope as well. The fund will target businesses requiring substantial growth financing rounds. Eligible activities span digital innovation, industrial systems, and life sciences sectors.
Typically, individual investments are expected to be around €100 million or more, including follow-on funding. The fund is designed to support private companies from Series B stage onward. Applicants must operate within eligible countries or intend to establish operations there. Eligible regions include EU member states and certain countries associated with Horizon Europe. Past support from European Innovation Council programs does not guarantee selection for this fund.
Funding comes from a mix of public and private sources
Initial contributors include Novo Holdings, EIFO, CriteriaCaixa, Santander, and Mouro Capital. Italian investors such as Intesa Sanpaolo, Fondazione Cariplo, and Fondazione Compagnia di San Paolo are also involved. Dutch pension fund ABP is represented by APG Asset Management. Wallenberg Investments and Allianz have joined the lineup as well. EQT intends to invest its own capital alongside these partners.
This initiative aligns with the EU Startup and Scaleup Strategy. European Commission President Ursula von der Leyen announced the plan during her 2025 State of the Union address. The goal is to bolster growth capital availability for Europe’s leading technology firms. The Commission has not disclosed any specific recipients or individual investment amounts, and EQT will choose the initial companies under the fund’s commercial framework.